The crypto market is on the rise. It attracts more and more individual traders ready to invest in promising assets. Besides, the market offers round-the-clock availability with high volatility and multiple opportunities to win big.
On the other hand, beginners generally have no prior experience in trading major coins like BTC or ETH. This is why such automated tools as crypto trading bot become more and more popular with newbies.
In this article, we will discuss the major advantages and downsides of using advanced software. We will also highlight the key reasons why traders should or should not apply automated crypto trading instruments.
A crypto bot is a program developed to let investors conduct an in-depth analysis of the cryptocurrency market and trends. The software comes with a selection of pre-set configurations and rules that can be fine-tuned following your individual preferences and crypto trading strategies. What’s more, a cryptocurrency trading bot can open or close trades automatically following the rules and specifications you have set in advance.
As a result, we have an automated instrument that is quite easy to set and use for market analysis and order execution on autopilot. Each program follows specific technical algorithms to evaluate specific market conditions. They may include coin prices, order types, and other parameters that can be configured to meet your specific trading goals.
However, the cryptocurrency market is extremely volatile. It has explored extreme turbulence several times over the last few years though still able to make a comeback. In some cases, having a straightforward automated crypto trading bot can reserve less space for maneuvering in the rapidly changing market.
The majority of beginner traders use automated crypto trading tools, as they help them reduce the time to complete multiple trades simultaneously. What’s more, such programs let them minimize the emotional impact (fear, greed, etc.). The major benefit here is that beginners can strictly follow a well-tailored strategy no matter what happens instead of making uncontrolled decisions on impulse.
Another advantage of a trading bot is the ability to access the market 24/7 without even checking how the trades are going on. All they need is to set configurations and parameters, while a crypto bot will do the rest for them for as long as needed. This factor makes the entire approach to cryptocurrency trading less time-consuming. One can focus on his or her daily routine instead of monitoring the market round-the-clock.
Of course, it will be wrong to say a crypto bot is the ultimate solution for all traders. It requires some background. What’s more, investors must take into consideration several important things before using an automated crypto trading software:
Profitability is probably the last and most important factor to consider. Check reviews of an underlying crypto bot, find information about software on different forums, look for ratings and select the one that meets your specific needs.
To understand if a trading bot is a right tool for you, we will highlight some major advantages of using automated crypto trading instruments:
Trading bots have brought the entire trading industry to a new level. However, they are not perfect. What’s more, using some programs can put your strategy and capital at risk.
With all pros and cons in mind, one may seek some more reliable and safer alternatives. New technologies have brought trading to a new level. They offer automated or semi-automated instruments that make it possible to copy experienced traders on autopilot or configure a selected strategy following your own preferences. Copy trading appears to be a safer and more reliable alternative to crypto trading bots, as you can keep full control over the situation, make changes whenever needed or fully rely on a trusted experienced, and successful investor with a proven track record.
A crypto trading bot is the result of trading industry evolution. It helps investors of any level enjoy automated order execution based on pre-set or default parameters. It reduces the time needed to perform trades in the 24/7 mode and ensures an efficient process according to the plan with all emotions left aside.
On the other hand, trading bots are not perfect. They still come with certain security issues. Besides, they still require manual supervision from time to time. This is where copy trading can be a more flexible and comprehensive trading tool for those who seek automated and safe solutions.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.